HEALTH SERVICES FINANCE ACTUAL EXAM
SCRIPT 2026 COMPREHENSIVE
QUESTIONS AND ANSWERS
◉ A medical lab bought a courier vehicle in 2008 and used a six year
depreciation schedule. The next year, the lab bought a simliar vehicle
and used a five year depreciation schedule. this violates the
accounting principle of ___
Answer: consistency
◉ a creditor of a medical facility is an entity that ___
Answer: loaned money to the facility, has not been paid for goods or
services provided
◉ for a going concernt, obligations are typically paid for purchased
items ___
Answer: one the due date of the bill
◉ modern accounting software is relatively easy to correct a
transaction error. Minor errors discovered after the annual financial
report is prepared are not corrected. why not?
Answer: retracting an annual report is not appropriate for minor
errors
,◉ which of the following is a requirement for a publicly held
healthcare corporation but not for proprietorship
Answer: annual financial report audited by an outside accountant
◉ a city government run mental health clinic is so badly managed
that all clinicians and nurses quit. the city was forced to close the
clinic. which of the following stakeholders bears the greatest lost
Answer: taxpayers
◉ a for profit hospital recently issued its annual financial report.
which of the following needs to be disclosed as a subsequent event
Answer: discovery of mold in a transplant unit resulting in
temporary closure
◉ t/f a medical practice that posts revenue on the day the service
was performed and posts expenses when suppliers are ordered is
using accrual accounting
Answer: true
◉ t/f a small drug company is researching promising new drug that
if approved will generate annual sales of approx 10 mill dollars.
during animal testing, one third of the mice died. this info must be
published in the companys annual report based on the principle of
full disclosure
,Answer: true
◉ why is the federal government a stakeholder in a privately owned
facility that provides medical services to elderly patients
Answer: paid thru medicare, the pts are stakeholders, fed gov
becomes stakeholder b/c its paying for services
◉ what are the advantages of cash accounting for a small business
Answer: lets owners know exactly how much the business has at
given time
◉ what are generally accepted accounting principles (GAAP) and
why are they important
Answer: rules for recording financial transactions and reporting
financial information. standards for businesses acctountants to
follow for financial transactions/information. includes going
concern concepts, matching, consistency, materiality, and full
disclosure
◉ T/F salvage value refers to money saved by purchasing used
equipment instead of new
Answer: false
, ◉ t/f accrued liabilities are the total of all liabilities in the current
fiscal year
Answer: false
◉ t/f the net worth of a company is its revenues minus its
expenditures
Answer: false
◉ which of the following would be considered a current asset
Answer: money in a checking account
◉ accounts receivable for a physicians office contains
Answer: accumulated charges for services performed
◉ A medical office has many pts covered under WeCare, a preferred
health insurance company. A level 1 office visit has a standard
charge of $80. WeCare pays 50. The past history shows that WeCare
denies 5% of claims of level 1 office visits. There are 100 level 1
office visits by wecare pts the past month. assuming the same past
hx, what will totals be for accts receivable and less allowance for
uncollectible payments
Answer: $8,000 and $400
SCRIPT 2026 COMPREHENSIVE
QUESTIONS AND ANSWERS
◉ A medical lab bought a courier vehicle in 2008 and used a six year
depreciation schedule. The next year, the lab bought a simliar vehicle
and used a five year depreciation schedule. this violates the
accounting principle of ___
Answer: consistency
◉ a creditor of a medical facility is an entity that ___
Answer: loaned money to the facility, has not been paid for goods or
services provided
◉ for a going concernt, obligations are typically paid for purchased
items ___
Answer: one the due date of the bill
◉ modern accounting software is relatively easy to correct a
transaction error. Minor errors discovered after the annual financial
report is prepared are not corrected. why not?
Answer: retracting an annual report is not appropriate for minor
errors
,◉ which of the following is a requirement for a publicly held
healthcare corporation but not for proprietorship
Answer: annual financial report audited by an outside accountant
◉ a city government run mental health clinic is so badly managed
that all clinicians and nurses quit. the city was forced to close the
clinic. which of the following stakeholders bears the greatest lost
Answer: taxpayers
◉ a for profit hospital recently issued its annual financial report.
which of the following needs to be disclosed as a subsequent event
Answer: discovery of mold in a transplant unit resulting in
temporary closure
◉ t/f a medical practice that posts revenue on the day the service
was performed and posts expenses when suppliers are ordered is
using accrual accounting
Answer: true
◉ t/f a small drug company is researching promising new drug that
if approved will generate annual sales of approx 10 mill dollars.
during animal testing, one third of the mice died. this info must be
published in the companys annual report based on the principle of
full disclosure
,Answer: true
◉ why is the federal government a stakeholder in a privately owned
facility that provides medical services to elderly patients
Answer: paid thru medicare, the pts are stakeholders, fed gov
becomes stakeholder b/c its paying for services
◉ what are the advantages of cash accounting for a small business
Answer: lets owners know exactly how much the business has at
given time
◉ what are generally accepted accounting principles (GAAP) and
why are they important
Answer: rules for recording financial transactions and reporting
financial information. standards for businesses acctountants to
follow for financial transactions/information. includes going
concern concepts, matching, consistency, materiality, and full
disclosure
◉ T/F salvage value refers to money saved by purchasing used
equipment instead of new
Answer: false
, ◉ t/f accrued liabilities are the total of all liabilities in the current
fiscal year
Answer: false
◉ t/f the net worth of a company is its revenues minus its
expenditures
Answer: false
◉ which of the following would be considered a current asset
Answer: money in a checking account
◉ accounts receivable for a physicians office contains
Answer: accumulated charges for services performed
◉ A medical office has many pts covered under WeCare, a preferred
health insurance company. A level 1 office visit has a standard
charge of $80. WeCare pays 50. The past history shows that WeCare
denies 5% of claims of level 1 office visits. There are 100 level 1
office visits by wecare pts the past month. assuming the same past
hx, what will totals be for accts receivable and less allowance for
uncollectible payments
Answer: $8,000 and $400
